PepsiCo shares rose slightly Tuesday after the company’s second-quarter earnings topped estimates. Healthier snacks and sparkling water helped fuel sales growth and offset a drag from foreign exchange.
Shares of the company, which has a market value of $185.8 billion, jumped less than 1% in premarket trading, but are up 20% so far this year. Shares of rival Coca-Cola, which has a market value $36 billion higher, have risen only 10% in the same time.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.54, adjusted, vs. $1.50 expected
- Revenue: $16.449 billion vs. $16.426 billion expected
The comeback of its North American beverage business continued during the second quarter, helped by its Starbucks coffee drinks and water business. Its organic revenue grew by 2.2%. As consumers drink less soda, Pepsi has turned to higher-growth beverage categories instead, releasing energy drinks like Mtn Dew Game Fuel and jumping in on the sparkling water trend with Bubly.
Bubly “is going to be one of our next billion-dollar brands. That’s our goal,” CEO Ramon Laguarta told analysts on the conference call.
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